European companies raised €14.7 billion in the second quarter from initial public offerings (IPOs), down 34 per cent on the same three-month period a year earlier.

Despite the decline, it was the second best quarter for IPO activity in the past five years after the highs observed last year when €22.3 billion was raised in Q2.

New figures compiled by PwC shows €31.1 billion has been raised in IPOs for the first half of 2013, a decline of 8 per cent compared to last year but still higher than for amounts raised in each full year of 2011, 2012 and 2013.

Irish housebuilder Cairn Homes's €400 million debut on the London Stock Exchange in early June was among the top ten European IPOs to take place in the second quarter. Spanish mobile operator Cellnex Telecoms $1.9 billion IPO in April was the biggest.

Spin-offs and carve-outs contributed to 27 per cent of total IPO proceeds in the second quarter, versus 18 per cent for the corresponding period in 2014.

London retained its leading position, accounting for nearly a third of European IPO proceeds raised in the quarter. A total of 29 IPOs were held in London, raising €4.7 billion. This compares to 54 flotation’s that raised €9.9 billion for the same quarter a year earlier.

Excluding London, European IPO activity was down 19 per cent during the quarter but improved by 22 per cent for the first half of the year.